The marriage market, labor supply and education choice

Published on 27 March 2015

This Working Paper is an update of The marriage market, labour supply and education choice

The authors develop an equilibrium lifecycle model of education, marriage and labor supply and consumption in a transferable utility context. The model is estimated using the British HPS.

We develop an equilibrium lifecycle model of education, marriage and labor supply and consumption in a transferable utility context. Individuals start by choosing their investments in education anticipating returns in the marriage market and the labor market. They then match based on the economic value of marriage and on preferences. Equilibrium in the marriage market determines intra-household allocation of resources. Following marriage households (married or single) save, supply labor and consume private and public under uncertainty. Marriage thus has the dual role of providing public goods and offering risk sharing. The model is estimated using the British HPS.

Authors

Costas Meghir

Research Fellow Yale University

Costas is a Research Fellow of the IFS and a Professor of Economics at Yale University and a Visiting Professor at University College London.

Monica Costa Dias

Deputy Research Director

Monica is a Deputy Research Director and Professor of Economics at the University of Bristol, with an interest in Labour, Family and Public Economics.